Indonesia Replaces Finance Minister as Prabowo Reshuffles Cabinet

Indonesian President Prabowo Subianto replaced Finance Minister Purbaya Yudhi Sadewa with Deputy Finance Minister Suahasil Nazara on 14 September, in the fifth cabinet reshuffle since Prabowo took office in October 2024, according to Indonesian and regional media.

A Departure Amid Growth Concerns

Purbaya’s exit followed months of speculation about his position amid investor concern over Indonesia’s fiscal direction, The Star reported. Despite pledges to accelerate growth toward Prabowo’s target of 8 per cent annually, the economy expanded by roughly 5 per cent during his tenure. Purbaya also drew controversy earlier in the year for remarks suggesting countries bordering the Strait of Malacca could charge vessels for passage, comments the government later said did not reflect official policy. Suahasil, a former head of the Finance Ministry’s Fiscal Policy Agency who had served as deputy finance minister, was sworn in at the presidential palace, pledging to “remain loyal to the 1945 Constitution” and to “faithfully implement all laws and regulations in the dedicated service of the nation and the state.”

Part of a Broader Shake-Up

The finance portfolio change came days before Prabowo carried out a further reshuffle moving other senior ministers, including the foreign and energy portfolios, as he approaches the two-year mark of his presidency. Indonesian media have characterised the series of changes as reflecting the president’s effort to recalibrate his economic and governance team roughly midway through his current term, and Suahasil now inherits responsibility for steering fiscal policy as the government balances growth ambitions against debt sustainability.

Why It Matters

As Southeast Asia’s largest economy and a member of the G20, Indonesia’s fiscal leadership carries weight well beyond its borders, shaping investor confidence in the region’s largest market. Suahasil’s elevation from within the ministry offers a measure of policy continuity after a period of uncertainty, but he now inherits the same growth target that proved difficult for his predecessor to meet.